Management.

The period for which non-executive directors are elected to serve on the board (their term of service) varies by country and by company. When deciding what best suits your case, you should consider the two most popular options are a three-year term or a one-year term. The latter is normally adopted by companies with dispersed ownership, usually listed companies with no individual large shareholder. It ensures prompt accountability to the owners who vote on all board members once every year. The three-year term, on the other hand, provides a more stable board composition and continuity as it allows for a better understanding of the business and an institutional memory at board level. If you opt for a three-year term or another multi-year option, you should consider whether you prefer to have your directors elected or re-elected all at once, or if staggered elections are a more beneficial option. What is an appropriate tenure and term of service for members of the board of directors?